The start of Trump 2.0 is not quite what Wall Street expected

Published On Feb 11, 2025, 4:00 AM

The start of Trump's new administration has not met Wall Street's optimistic expectations. January saw the lowest volume of M&A deals in over a decade. Key concerns include potential changes to tax breaks for hedge funds and private equity, and new scrutiny from antitrust regulators on major mergers. Additionally, Trump's confrontational stance on bank policies has raised uncertainty around financial institutions and their regulatory environment. Despite these issues, major bank stocks have performed well at the start of 2025.

Stock Forecasts

JPM

Negative

Financial institutions may see continued pressure due to regulatory uncertainty and M&A slowdowns, but their stocks have remained resilient. This could suggest that the market is currently overlooking these regulatory issues in favor of existing operational strengths. However, if the administration moves forward with significant changes, there may be downward pressure on these stocks in the future.

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